This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0705z1.LFS.docx
DATE: 6/13/2024
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS
BILL #: CS/HB 705 Public Works Projects
SPONSOR(S): Local Administration, Federal Affairs & Special Districts Subcommittee; Shoaf
TIED BILLS: IDEN./SIM. BILLS: SB 594, CS/SB 742
FINAL HOUSE FLOOR ACTION: 80 Y’s
32 N’s GOVERNOR’S ACTION: Approved
SUMMARY ANALYSIS
CS/HB 705 passed the House on February 28, 2024, as amended, and subsequently passed the Senate on
March 4, 2024.
Current law prohibits the state or any political subdivision that contracts for a public works project using state-
appropriated funds from imposing certain requirements on contractors for public works projects, with certain
exceptions. Current law defines “public works project” as an activity that is paid for with any state-appropriated
funds and that consists of the construction, maintenance, repair, renovation, remodeling, or improvement of a
building, road, street, sewer, storm drain, water system, site development, irrigation system, reclamation
project, gas or electrical distribution system, gas or electrical substation, or other facility, project, or portion
thereof owned in whole or in part by any political subdivision.
The bill amends the definition of “public works project” to include all projects paid for with local funds in addition
to state-appropriated funds, and clarifies that the definition does not include the provision of goods, services, or
work incidental to the project. The bill maintains the ability of counties and municipalities to preclude certain
contractors from participating in the bidding process for public works projects based on the geographic location
of a contractor’s headquarters or offices, or the residences of its employees, if the county or municipality is the
sole source of funding for the project.
The bill does not appear to have a fiscal impact on state or local governments.
The bill was approved by the Governor on May 28, 2024, ch. 2024-208, L.O.F., and will become effective on
July 1, 2024.
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DATE: 6/13/2024
I. SUBSTANTIVE INFORMATION
A. EFFECT OF CHANGES:
Present Situation
Competitive Solicitation of Construction Services
Current law specifies the procedures to be followed in the procurement of construction services for
public property and public owned buildings.
1
The Department of Management Services (DMS) is
responsible for establishing by rule procedures:
For determining the qualifications and responsibility of potential bidders prior to advertising for
and receiving bids for building construction contracts.
For awarding each state agency construction project to the lowest qualified bidder.
To govern negotiations for construction contracts and contract modifications when such
negotiations are determined to be in the best interest of the state.
For entering into performance-based contracts for the development of public facilities when
those contracts are determined to be in the best interest of the state.
2
State contracts for construction projects that are projected to cost in excess of $200,000 must be
competitively bid.
3
A county, municipality, special district, or other political subdivision seeking to
construct or improve a public building must competitively bid the project if the estimated cost is in
excess of $300,000.
4
For a competitive solicitation
5
for construction services paid for with state-appropriated funds, a state
college, county, municipality, school district, or other political subdivision of the state (local government)
may not use a local ordinance or regulation that provides a preference based upon a contractor,
subcontractor, or material supplier or carrier:
Maintaining an office or place of business within a particular local jurisdiction;
Hiring employees or subcontractors from within a particular local jurisdiction; or
Prior payment of local taxes, assessments, or duties within a particular local jurisdiction.
6
If state-appropriated funds are used to pay for the construction services, a local government must
disclose in the solicitation document that any of the aforementioned preferences will be prohibited.
7
Public Works Projects
A “public works project” is an activity that is paid for with any state-appropriated funds and that consists
of the construction, maintenance, repair, renovation, remodeling, or improvement of a building, road,
street, sewer, storm drain, water system, site development, irrigation system, reclamation project, gas
or electrical distribution system, gas or electrical substation, or other facility, project, or portion thereof
owned in whole or in part by any political subdivision.
8
Except as required by federal or state law, the state or any political subdivision that contracts for a
public works project with state-appropriated funds may not:
Prevent a certified, licensed, or registered contractor, subcontractor, or material supplier or
carrier, from participating in the bidding process based on the geographic location of the
1
See ch. 255, F.S.
2
S. 255.29, F.S.
3
See s. 255.0525, F.S.; see also R. 60D-5.002 and 60D-5.0073, F.A.C.
4
S. 255.20(1), F.S. For electrical work, local governments must competitively bid projects estimated to cost over $75,000.
5
“Competitive solicitation” means an invitation to bid, a request for proposals, or an invitation to negotiate. S. 255.248, F.S.
6
S. 255.0991(2), F.S.
7
S. 255.0991(3), F.S.
8
S. 255.0992(1)(b), F.S.
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DATE: 6/13/2024
company headquarters or offices of the contractor, subcontractor, or material supplier or carrier
submitting a bid on a public works project or the residences of employees of such contractor,
subcontractor, or material supplier or carrier;
Require a contractor, subcontractor, or material supplier or carrier engaged in the project to:
o Pay employees a predetermined amount of wages or prescribe any wage rate;
o Provide employees a specified type, amount, or rate of employee benefits;
o Control, limit, or expand staffing; or
o Recruit, train, or hire employees from a designated, restricted, or single source.
Prohibit any contractor, subcontractor, or material supplier or carrier from receiving information
about public works opportunities or submitting a bid on the project if such individual is able to
perform the work described and is qualified, licensed, or certified as required by state law,
unless that vendor has been placed on the state’s convicted vendor or discriminatory vendor
lists.
9
With certain exceptions,
10
these restrictions do not apply to public works projects that are locally
funded.
Prior to July 1, 2023, the state or a political subdivision could impose such restrictions on contractors
for state-funded public works projects, up to $1 million; however, in 2023, the Legislature removed the
cap and prohibited such restrictions for public works projects using any amount of state-appropriated
funds.
11
Effect of the Bill
The bill revises the definition of “public works project” to include all projects paid for with local or state
funds, and clarifies that the definition does not include the provision of goods, services, or works
incidental to the project.
12
This means the aforementioned restrictions are applicable to all public works
projects paid for with local or state funds instead of state funds only. However, the bill allows a county
or municipality to prevent a certified, licensed, or registered contractor, subcontractor, or material
supplier or carrier from participating in the bidding process based on the geographic location of the
company headquarters or offices or residences of its employees if the county or municipality is the sole
source of funding for the public works project.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
9
S. 255.0992(2), F.S.
10
Section 255.0992(3), F.S., provides that the restrictions do not apply to contracts executed under ch. 337, F.S., or a use authorized
by s. 212.055(1), F.S., that is approved by a majority vote of the electorate of the county or by a charter amendment approved by a
majority vote of the electorate of the county.
11
Ch. 2023-134, Laws of Fla.
12
The bill provides that goods, services, or works incidental to the public works project include provision of security services, janitorial
services, landscaping services, maintenance services, transportation services, or other services that do not require a construction
contracting license or involve supplying or carrying construction materials for such project.
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DATE: 6/13/2024
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The prohibition on certain predetermined wage, benefits, and staffing requirements may result in a
positive fiscal impact for contractors.
D. FISCAL COMMENTS:
None.